With the Las Vegas economy shutdown since early March, landlords in Las Vegas are feeling the economic effects of coronavirus since it’s estimated that 30 to 40 percent of Vegas residents are unemployed and may be unable to pay their rents.
The big question is what can owners do to help their tenants while the lockdown persists and the economy is paused?
In this article, we will answer this question and provide tips for how owners can survive the coming months until people start going back to work, and businesses start getting back to normal.
Landlords Should Contact Their Lenders Immediately
One of the most constructive things that landlords in Las Vegas should do right now is to contact their lenders to see if they qualify for forbearance, if they will be unable to make their April mortgage payments.
If a landlord can make their April payments, they should still consider refinancing their existing loans anyway to take advantage of historically low interest rates, or applying for a home equity line of credit (HELOC) for one or more of their rental properties.
Refinancing, or applying for a HELOC, will enable landlords to potentially have access to cash that they can use for building cash reserves which will enable them to have a financial “buffer” to weather the coming months.
Communicate with Tenants
Since evictions are suspended in Nevada until the Governor’s recent emergency declaration is lifted, landlords in Las Vegas should do everything they can to work things out with their tenants.
Tenants should be encouraged to pay their landlord some money now towards their rent while agreeing to catch up and pay the remaining balance over up to 12 months.
Landlords should also encourage their tenants to utilize the programs that are available to them including unemployment. If the tenant is a taxpayer, they should be made aware of the pending Federal Stimulus payment that they will be receiving within the coming weeks as well.
Contact GoldenWest Management
To learn more about the Las Vegas Rental Market, or to speak with us about our property management services, contact us today by calling (866) 545-5303 or click here.